Interest on late settlement of claims
[47B. (1) Where payment on a policy issued by an insurer becomes due and the person entitled thereto has complied with all the requirements, including the filing of complete papers, for claiming the payment, the insurer shall, if he fails to make the payment within a period of ninety days from the date on which the payment becomes due or the claimant complies with the requirements, whichever is later, pay interest as specified in sub-section (2) on the amount so payable unless he proves that such failure was due to circumstances beyond his control.
(2) The interest under sub-section (1) shall be payable for the period during which the failure continues and shall be calculated at monthly rates at the rate of five per cent higher than the prevailing bank rate.
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